CHAPTER

3
[Student version]
Activity:
Rent to Own (1/3)
Name____________________________
Date_____________________________

CHAPTER 3: DEBT
Name_______________________________________ Date_____________________________

Rent to Own
Objective
The purpose of this activity is to research and examine the higher cost of using
rent-to-own services versus saving and purchasing the item.
Objective
The purpose of this activity is to research and examine the higher cost of using
Directions
rent-to-own services versus saving and purchasing the item.

Visit theDirections
website of a rent-to-own company (use a search engine if necessary). Based on the information you
gather, complete the form below to compare the price of purchasing from a rent-to-own store rather than a
Visit the website of a rent-to-own company (use a search engine if necessary).
traditional vendor.
Based on the information you gather, complete the form below to compare the
price of purchasing from a rent-to-own store rather than a traditional vendor.

Item Cost/ Wk Wks Total Retail Savings

Cost

Laptop
Computer

Dryer

Dining
Room Set

DVD
Player
Big
Screen
TV

Bedroom
Set

Totals

FOUNDATIONS IN PERSONAL FINANCE COLLEGE EDITION CHAPTER 3: DEBT

 CHAPTER

3 Activity:
Rent to Own (2/3)
Why would one want to use a rent-to-own store for merchandise? Think of at least three reasons and record them below.

Why should one not use a rent-to-own store for merchandise? Think of at least three reasons and record them below.

After completing this activity, would you use a rent-to-own store? Why or why not?

Using the total amount you would save by purchasing these retail items with cash vs. rent-to-own, determine how
much money you would accrue by making a 40-year investment with that amount.

FOUNDATIONS IN PERSONAL FINANCE COLLEGE EDITION CHAPTER 3: DEBT

 CHAPTER

3 Activity:
Rent to Own (3/3)

Monthly debt payments rob you of your retirement.

Years Invested Monthly At 12% Per Year

MONTHLY
PAYMENTS 5 YEARS 10 YEARS 15 YEARS 25 YEARS 40 YEARS

$100 8,167 23,004 49,958 187,885 1,176,477

$200 16,334 46,008 99,916 375,769 2,352,954

$300 24,500 69,012 149,874 563,654 3,529,431

$400 32,668 92,015 199,832 751,538 4,705,909

$500 40,835 115,019 249,790 939,423 5,882,386

$600 49,002 138,023 299,748 1,127,308 7,058,863

$700 57,168 161,027 349,706 1,315,193 8,235,341

$800 65,336 184,031 399,664 1,503,077 9,411,818

$900 73,503 207,034 449,622 1,690,962 10,588,295

$1,000 81,669 230,039 499,580 1,878,847 11,764,772

$1,200 98,004 276,046 599,496 2,254,616 14,117,727

$1,500 122,504 345,058 749,370 2,818,270 17,647,159

$2,000 163,339 460,077 999,160 3,757,693 23,529,545

FOUNDATIONS IN PERSONAL FINANCE COLLEGE EDITION CHAPTER 3: DEBT